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9 Jan 2014
GBP/USD recovering from 6 month uptrend?
FXstreet.com (London) - GBP/USD is being supported in the 1.6470 area after supply just shy of the 1.65 handle met the bounce from 1.6455/60 territory.
While The Bank of England left unchanged its official rate at 0.5% and the size of its Asset Purchase Programme at GBP 375 billion as expected, GBP/USD has also seen US Jobless Claims come out pretty much as expected at 330k vs 335k consensus while Continuing Jobless Claims disappointed at 2.865m vs 2.840m consensus. From a technical stand point, analysts at Commerzbank explained that GBP/USD is attempting to recover from the 1.6342 6 month uptrend. “We believe that ultimately the trend line will break as the market recently charted a key day reversal. This coupled with the triple divergence of the daily and weekly RSI and the 13 count on the TD combo both suggest that this is a significant failure and is likely to have topped short term”.
GBP/USD Levels
The 20 DMA is 1.6401, the 50 DMA is 1.6270 and the 200 DMA is 1.5721. RSI (14) reads 55.09. Supports are 1.6316, 1.6337, 1.6374 1.6395. Spot is 1.6464, while resistances are 1.6474, 1.6503, 1.6558 and 1.6580.
While The Bank of England left unchanged its official rate at 0.5% and the size of its Asset Purchase Programme at GBP 375 billion as expected, GBP/USD has also seen US Jobless Claims come out pretty much as expected at 330k vs 335k consensus while Continuing Jobless Claims disappointed at 2.865m vs 2.840m consensus. From a technical stand point, analysts at Commerzbank explained that GBP/USD is attempting to recover from the 1.6342 6 month uptrend. “We believe that ultimately the trend line will break as the market recently charted a key day reversal. This coupled with the triple divergence of the daily and weekly RSI and the 13 count on the TD combo both suggest that this is a significant failure and is likely to have topped short term”.
GBP/USD Levels
The 20 DMA is 1.6401, the 50 DMA is 1.6270 and the 200 DMA is 1.5721. RSI (14) reads 55.09. Supports are 1.6316, 1.6337, 1.6374 1.6395. Spot is 1.6464, while resistances are 1.6474, 1.6503, 1.6558 and 1.6580.